Exposing Ideas to the Envelope of Serendipity

Sunday, September 13, 2009

I find this very long-term view of the S&P 500 most interesting, as it shows the benchmark index since its inception. While I posted something similar awhile back, I find the price obedience to the channel lines, and particularly the support at the parallel cross-lines fascinating. Note the similarities in the highlighted areas, and most importantly, the subsequent resumption of the uptrend after the last touch near the long-term primary uptrend line. Also very intriguing is that a possible upside target of the 50% channel line correlates almost perfectly with both the upside projection of the inverse head & shoulders pattern we've looked at numerous times and the 61.8% fibonacci retracement of the 10/07-3/09 plunge. I am still on the lookout for a near-term correction of some degree, perhaps when we test resistance in the 1053-1056 area, if not before; but the abundance of bullish chart setups I am continuing to see in my scans suggests that any imminent pullback/correction could turn out to be relatively brief and will likely present a buying opportunity for the next leg up.

I find this very long-term view of the S&P 500 most interesting, as it shows the benchmark index since its inception. While I posted something similar awhile back, I find the price obedience to the channel lines, and particularly the support at the parallel cross-lines fascinating. Note the similarities in the highlighted areas, and most importantly, the subsequent resumption of the uptrend after the last touch near the long-term primary uptrend line. Also very intriguing is that a possible upside target of the 50% channel line correlates almost perfectly with both the upside projection of the inverse head & shoulders pattern we've looked at numerous times and the 61.8% fibonacci retracement of the 10/07-3/09 plunge. I am still on the lookout for a near-term correction of some degree, perhaps when we test resistance in the 1053-1056 area, if not before; but the abundance of bullish chart setups I am continuing to see in my scans suggests that any imminent pullback/correction could turn out to be relatively brief and will likely present a buying opportunity for the next leg up.

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